Seoul shares end 0.32 pct lower on profit-taking

(ATTN: RECASTS 5th para; ADDS bond yields at bottom)
SEOUL, May 6 (Yonhap) -- South Korean stocks closed 0.32 percent lower Wednesday
on profit-taking following recent surges, analysts said. The local currency fell
against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.47 points to
1,393.45. Volume was heavy at 727.7 million shares worth 9.66 trillion won
(US$7.56 billion), with gainers outpacing losers 412 to 405.
"Institutional investors scrambled to book profits from recent gains," said Kwak
Joong-bo, an analyst at Hana Daetoo Securities Co. "But the Seoul bourse still
has upward momentum, given a stabilizing currency and budding signs of an
economic recovery."
The KOSPI, which started stronger with foreign investors being net buyers,
reversed earlier gains in late trading as institutional investors increased their
selling.
Institutions sold a net 457 billion won worth of local stocks on the main bourse.
At one point in morning trade, the key index breached the 1,400-point level for
the first time since Oct. 2.
Analysts said sentiment was also weighed down as investors were cautious over the
U.S. government's assessment of banks, whose results are due out on Thursday.
Market leader Samsung Electronics dropped 2.75 percent to 566,000 won and the
world's No. 2 display maker LG Display fell 0.79 percent to 31,200 won.
Builders rose sharply, however, as the government lowered the tax rate on capital
gains from home sales last week, raising hopes for a recovery in the construction
sector.
The local currency ended at 1,277 won to the dollar, down 4.50 won from Monday's
close, as exporters sold the greenback.
Bond prices, which move inversely to yields, finished lower. The return on
three-year Treasuries rose 0.02 percentage point to 3.80 percent and the
benchmark yield on five-year government bonds added 0.04 percentage point to 4.42
percent. Local financial markets were closed for Children's Day on Tuesday.
ygkim@yna.co.kr
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